**Cardano Shows Promise Amid Market Pullback**
Cardano has experienced significant developments recently, despite its native token facing a substantial price decline. Here’s a look at the key happenings.
### Grayscale’s Support for Cardano
Grayscale, a top digital asset manager, has reinforced its backing of Cardano by making it the third-largest holding in its Smart Contract Fund. This fund provides accredited investors with indirect exposure to a variety of cryptocurrencies linked to smart contract platforms. Cardano now stands at 22.91%, behind only Ether (30.92%) and Solana (29.05%). It leads over Avalanche, Sui, and Polkadot, which together hold around 17%.
### Potential Ripple Partnership
Speculation is rife about a potential partnership between Cardano and Ripple, spurred by a Ripple video featuring Cardano’s logo and discussing future tokenization. This isn’t the first time such rumors have surfaced; Cardano’s founder, Charles Hoskinson, previously hinted at integrating Ripple’s stablecoin, RLUSD, and has shared positive exchanges with Ripple’s CEO, Brad Garlinghouse. Additionally, Hoskinson teased a possible upcoming collaboration between Cardano and Bitcoin.
### ADA Price Outlook
Cardano’s ADA token has recently dropped to about $0.56, marking a 16% weekly decline, according to CoinGecko. Market observers like Bitcoin Wukong have identified $0.58 and $0.45 as strong support levels, suggesting patience and potential buying opportunities.
### ETF Approval Prospects Dim
A spot ADA exchange-traded fund (ETF) could be a game-changer for Cardano, with Grayscale having filed for such a product with the NYSE earlier this year. However, optimism for approval has waned, with the odds dropping from 70% to about 52% as of now, based on data from Polymarket.
